Help to Buy may have to be scrapped, Vince Cable warns

MrRee_2

It's the same money - just going round and round, usually adding inflation on each tour.

Parents leave money and house to children, these children buy a bigger house and give some of the funds to the grandchildren who buy houses at the bottom end. And around it goes, each generation benefitting from the one before.

There is no smoke, there are no mirrors, it's simply the cycle of life.

Loughton_Monkey

Thrugelmir wrote: »

Definition of a Ponzi scheme.

"Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going."

That's not a definition. That's just a fairly obvious characteristic of such a scheme.

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.

If HTB was fraudulent, I think Mr Plod would eventually wake up and ask Georgie to 'help them with their enquiries'. There's time yet, but so far, they haven't, so it isn't.

the_flying_pig

Yep, it's a pyramid rather than Ponzi scheme.

chucky

Graham_Devon wrote: »

Mervyn King...

Maybe we should call it "disquiet", as the FT put's it. Or critism as the telegraph, independant and sky put it.

Which others fall into the "many" that also haven't criticised it?

You really struggle to read. That's not what it says.

Do you go round in your real life making things up and lying?

chucky

Thrugelmir wrote: »

Definition of a Ponzi scheme.

"Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going."

Yet another one who struggles claiming Help to Buy is illegal.... Hahahahaha.

A Ponzi scheme is fraudulent. Stop making things up. Help To Buy isn't fraudulent.

chucky

Loughton_Monkey wrote: »

That's not a definition. That's just a fairly obvious characteristic of such a scheme.

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.

If HTB was fraudulent, I think Mr Plod would eventually wake up and ask Georgie to 'help them with their enquiries'. There's time yet, but so far, they haven't, so it isn't.

I never understand why the usual suspects on here feel the need to make things up.

They get found out each and every day how limited their intelligence is.

MFW_ASAP

***Serious question for the people who are waiting for a crash before they buy***

I guess this is aimed more at GD than anyone else, I am interested to know why, if they are serious about buying a house, do they continue to swim against the tide? If you wait for a market to meet your own specific criteria (i.e. dropping by a certain percentage point), then you may be waiting a long time, perhaps forever.

Instead, why not look at the current market and see if there is a way to use the underlying conditions to improve your situation? The Help to Buy scheme is a case in point. Instead of complaining how it is raising house prices (and therefore ruining your plans), why not simply take advantage of this scheme and get on in life?

Opportunities like these, and historically low mortgage rates, Stamp duty holidays, etc. don't come around often. Instead of bemoaning how these 'props' keep wrecking your hopes for the market to converge with your own narrow criteria, cut your losses and take whatever advantages life throws at you.

Our Hero Dithering Dad has done this. When everyone was going mad buying houses at ridiculous prices, he agreed with many on this forum (when it was just a sub-board of the housing board) when they thought there was going to be a reckoning for all this 'cheap' credit and rampant HPI. He therefore 'hunkered down' and set up the amazingly popular Mortgage Free in Three (Yrs) challenge where he and 133 other people scrimped for 3 years and made huge overpayments to their mortgages. When the credit crunch hit, they were all prepared.

When that Challenge ended, Dithering Dad had paid £53k off his mortgage and he and his family were much safer from the recession but also in a great position to take advantage of the crash.

He then bought his dream house and used a combination of HPC, low interest rates and cheap labour to buy a dream house and renovate it on the cheap. He then did the same Overpayment Blitz and 3 years later he has reduced the mortgage down by £57K. He's now taken advantage of historically low fixed rates and sorted himself out with a 5 year fee free fix at 2.79% - locking in those gains and making himself and his family much safer.

I don't understand why you bears don't follow the lead of the great man and play the market? When this recession is over he'll be moving towards becoming a millionaire.

Instead of making predictions and carrying out analysis and then doing nothing about it. Our hero DD listened to the bears on here in 2007 and agreed with them. He was bearish about the housing market (and stock markets) and did something about it - He overpaid his mortgage for safety and he moved his pension out of equities and into cash. When the dust settled he became neutral about house prices and bullish about the stockmarket - He bought a dream house and moved back into equities. He now has a Millionaires home and his pension has double in value.

Don't be a bear or bull for life, be one or the other when the market dictates and don't get entrenched in your positions when things go against you. Don't swim against the tide, navigate your way through life and you will be rewarded. Follow the DD model, not the Graham_Devon and Shortchanged model. After all, who has been the more successful over the last 6 years?

chucky

MFW_ASAP wrote: »

lIf you wait for a market to meet your own specific criteria (i.e. dropping by a certain percentage point), then you may be waiting a long time, perhaps forever.

Instead, why not look at the current market and see if there is a way to use the underlying conditions to improve your situation? The Help to Buy scheme is a case in point. Instead of complaining how it is raising house prices (and therefore ruining your plans), why not simply take advantage of this scheme and get on in life?

Opportunities like these, and historically low mortgage rates, Stamp duty holidays, etc. don't come around often. Instead of bemoaning how these 'props' keep wrecking your hopes for the market to converge with your own narrow criteria, cut your losses and take whatever advantages life throws at you.

There are 2 parts to this, there are some that are not capable of understanding the great opportunities they have had in front of them. They blame those that have as done well as lucky instead of understanding the assessment of the risks and taking advantage of the market opportunities.

Then there are the others who will never be able to improve their life due to their environment, lack of ambition and low life standards. They blame everyone else for their own failures and their release is this forum hence the number of threads looking for attention. That Devon bloke fits in this category perfectly.

MFW_ASAP

chucky wrote: »

There are 2 parts to this, there are some that are not capable of understanding the great opportunities they have had in front of them. They blame those that have as done well as lucky instead of understanding the assessment of the risks and taking advantage of the market opportunities.

Then there are the others who will never be able to improve their life due to their environment, lack of ambition and low life standards. They blame everyone else for their own failures and their release is this forum hence the number of threads looking for attention. That Devon bloke fits in this category perfectly.

Some would argue that he fits in both camps.

dryhat

chucky wrote: »

I never understand why the usual suspects on here feel the need to make things up.

They get found out each and every day how limited their intelligence is.

That's right, I found out yesterday that you think super mario coins are the same as bitcoins.

...... and your evidence for this was gathered from typing "bitcoin+fraud" into google.

:rotfl: